Airlines will have to disclose cancellation charges and refund conditions separately while displaying airfares to passengers under a new set of aviation rules notified by the government. The rules also provide for the publication of airline tariffs on digital platforms and monitoring of domestic carriers’ fares by the aviation regulator.
These rules under the Bharatiya Vayuyan Niyam, 2026, were notified by the civil aviation ministry (MoCA) on October 26 and published in the Gazette of India on October 31. They will come into effect on January 1, 2027, replacing the Aircraft Rules, 1937. The rules have been framed under the Bharatiya Vayuyan Adhiniyam, 2024, which replaced the Aircraft Act, 1934. The legislation was passed by the Lok Sabha on August 9, 2024, and the Rajya Sabha on December 5, 2024. It received presidential assent on December 11, 2024, and came into force on January 1, 2025.
The rules also require airlines to establish tariffs based on factors including the cost of operation. In an extraordinary situation, the Central government can issue written directions to airlines in the public interest. Such directions must be proportionate to the circumstances and remain in force only for a specified period. The provisions do not introduce a routine cap on airfares or require government approval for every ticket price. Hence, airlines will continue to determine fares under normal circumstances. The new framework, however, provides for tariff submission and monitoring by the DGCA, along with government intervention in extraordinary situations.
